Pakistan, July 16 -- ISLAMABAD - Pakistan exported over 1.4 million tonnes of furnace oil during the fiscal year ending June 30, 2025, as local demand for the fuel continued to decline sharply. The exports included 1.3 million tonnes of high sulphur furnace oil (HSFO) and nearly 138,000 tonnes of low sulphur furnace oil (LSFO), according to official data.

The drop in domestic usage is mainly due to furnace oil's reduced role in power generation. In June alone, exports of HSFO dropped to 73,101 tonnes from 121,066 tonnes in May. Rising costs caused by the government's petroleum and climate levies-totaling Rs82,077 per tonne-have made furnace oil less viable for power and industry.

Furnace oil, being a deregulated product, is sensitive to...